The following are some standard definitions that help you measure the range of losses possible in the event of damage to your business.
Workers’ Compensation and Employers Liability Coverage
Workers’ compensation and employers liability coverage insures against claims for work-related injuries or diseases suffered by employees who are compensable by statute and/or imposed by law as damages. Other states’ insurance is incorporated in the policy and is activated by the appropriate entry on the declarations. Voluntary workers’ compensation and employers liability coverage may be made effective for workers not subject to a workers’ compensation law.
Excess Workers’ Compensation Self-insurance Bonds
Excess workers’ compensation self-insurance bonds are required by federal or state authorities for a corporation to qualify as a self-insurer. They serve as evidence of financial responsibility or ability to pay workers’ compensation or employers liability benefits to employees.
Stop-Gap or Employers Liability Coverage
In monopolistic workers’ compensation states, where the coverage provided by the state is not as broad as that of a workers’ compensation policy including employers’ liability coverage, many insurers offer a nonstandard coverage called stop-gap or employers liability coverage. This is often added by endorsement to the CGL policy or may be issued as a stand-alone form. It fills the gap between the coverage provided by the state and the coverage traditionally provided by a standard workers’ compensation policy.